(e) Provisions, contingent liabilities and contingent Assets
Provisions for legal claims, etc. are recognised when the Company has a present legal or constructive obligation as a
result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount
can be reliably estimated.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value is a
pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
The increase in the provision due to the passage of time is recognised as interest expense.
Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to
occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company,
or where any present obligation cannot be measured in terms of future outflow of resources, or where a reliable
estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a
largely probable outflow of resources are provided for.
A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit
is probable.
Provisions, contingent assets and contingent liabilities are reviewed at each balance sheet date.
(f) Income tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it
relates to an item recognised directly in equity or in other comprehensive income.
i. Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects
the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any,
related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted as at the
reporting date and applicable to the reporting period.
Current tax assets and liabilities are offset only if the Company:
1. has a legally enforceable right to set off the recognised amounts; and
2. intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
ii. Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred
tax is also recognised in respect of carried forward tax losses.
Deferred tax is not recognised for:
• temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not
a business combination and that affects neither accounting nor taxable profit or loss at the time of
the transaction;
• temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent
that the Company can control the timing of the reversal of the temporary differences and it is probable that
they will not reverse in the foreseeable future; and
• taxable temporary differences arising on the initial recognition of goodwill.
ii. Deferred tax
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available
against which they can be used. In case of tax losses, the Company recognises a deferred tax asset only to the
extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient
taxable profit will be available against which such deferred tax asset can be realised.
Deferred tax assets, unrecognised or recognised, are reviewed at each reporting date and are recognised/
reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will
be realised.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or
the liability is settled, based on the laws that have been enacted or substantively enacted at the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the
Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets
and liabilities will be realised simultaneously.
(g) Impairment of non-financial assets
The carrying amounts of the Company's non-financial assets are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount
is estimated.
For impairment testing, assets that do not generate independent cash inflows are grouped together into cash
generating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are
largely independent of the cash inflows of other assets or CGUs.
The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs
to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU
(or the asset).
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable
amount. Impairment losses are recognised in the statement of profit and loss.
Impairment loss recognised in respect of a CGU is allocated first to reduce the carrying amount of any goodwill
allocated to the CGU, and then to reduce the carrying amounts of the other assets of the CGU on a pro rata basis.
In respect of assets for which impairment loss has been recognised in prior periods, the Company reviews at each
reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is
made only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(h) Cash and cash equivalents
For presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at
call with financial institutions, other short-term, highly liquid investments with original maturities of three months or
less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value, and bank overdrafts. Bank overdrafts are shown within other current financial liabilities in the balance sheet.
(i) Financial instruments
Recognition and initial measurement
Trade receivables are initially recognised when they are originated. All other financial assets and financial liabilities are
initially recognised when the Company becomes a party to the contractual provisions of the instrument.
Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a
decline is other than temporary in the opinion of the Management.
Except trade receivables Financial assets and liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial
recognition of financial asset or financial liability. Transaction costs directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.
Classification and subsequent measurement
i) Financial assets
Classification
The Company classifies financial assets as subsequently measured at amortised cost, fair value through other
comprehensive income or fair value through profit or loss on the basis of its business model for managing the
financial assets and the contractual cash flow characteristics of the financial asset.
Initial recognition and measurement
All financial assets are recognised initially at fair value. Purchases or sales of financial assets that require delivery
of assets within a time frame established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.
Derecognition
A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from
the Company's balance sheet) when:
1. The rights to receive cash flows from the asset have expired, or
2. The Company has transferred its rights to receive the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the
Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not
retain control of the financial asset. If the Company enters into transactions whereby it transfers assets
recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the
transferred assets, the transferred assets are not derecognised.
3. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognise the transferred asset to the extent of
the Company's continuing involvement. In that case, the Company also recognises an associated liability.
The transferred asset and the associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained.
4. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay.
Impairment of financial assets
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets:
1. Trade receivables
The Company follows ‘simplified approach' for recognition of impairment loss allowance on Trade
receivables which do not contain a significant financing component.
The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from
its initial recognition.
2. Others
For recognition of impairment loss on other financial assets and risk exposure, the Company determines
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide for impairment loss.
However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit
quality of the instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.
ii) Financial liabilities
Classification
Financial liabilities are classified as measured at amortised cost or fair value through profit and loss (‘FVTPL').
A financial liability is classified as at FVTPL if it is classified as held - for - trading, or it is a derivative or it is
designated as such on initial recognition.
Initial recognition and measurement
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense,
are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the
effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or
loss. Any gain or loss on derecognition is also recognised in profit or loss.
Derecognition
Financial liabilities are decrecognised when these are extinguished, that is, when the obligation is discharged,
cancelled or has expired.
(j) Property, plant and equipment
Items of property, plant and equipment are measured at historical cost, less accumulated depreciation and
accumulated impairment losses, if any.
Historical cost includes expenditure that is directly attributable to the acquisition of the assets incurred up to the date
the asset is ready for its intended use.
The cost property, plant and equipment at 01st April 2017, the company's date of transition to Ind AS, was determined
with reference to its carrying value recognized as per the previous GAAP (deemed cost), as at the date of transition
to Ind AS.
Subsequent expenditure
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any
component accounted for as a separate asset is de-recognised when replaced. All other repairs and maintenance
costs are charged to profit or loss during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over
their estimated useful lives or, in the case of certain leased furniture, fittings and equipment, the shorter lease term
as follows:
The useful lives have been determined based on technical evaluation done by the management's internal expert
which are higher than those specified by Schedule II to the Companies Act, 2013, in order to reflect the actual usage
of the assets.
The residual values are not more than 5% of the original cost of the asset. The assets' residual values and useful lives
are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in
profit or loss within Other income / Other expenses.
(k) Intangible assets
Intangible assets purchased are initially measured at cost. Intangible assets acquired in a business combination
are recognised at fair value at the acquisition date. Subsequently, intangible assets are carried at cost less any
accumulated amortisation and accumulated impairment losses, if any.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific
asset to which it relates and the cost of the asset can be measured reliably. All other expenditure, including expenditure
on internally generated goodwill and brands, is recognized in profit or loss as incurred.
The useful lives of intangible assets are assessed as either finite or indefinite. Finite-life intangible assets are amortised
on a straight-line basis over the period of their estimated useful lives. Estimated useful lives by major class of finite-life
intangible assets are as follows:
Computer software - 3 years
The amortisation period and the amortisation method for finite-life intangible assets is reviewed at each financial year
end and adjusted prospectively, if appropriate.
For indefinite-life intangible assets, the assessment of indefinite life is reviewed annually to determine whether it
continues; if not, it is impaired or changed prospectively basis revised estimates.
Internally generated:
Research and development Expenditure on research activities is recognised in profit or loss as incurred.
Development expenditure is capitalised as part of the cost of the resulting intangible asset only if the expenditure can
be measured reliably, the product or process is technically and commercially feasible, future economic benefits are
probable, and the Company intends to and has sufficient resources to complete development and to use the asset.
Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, the asset is measured at
cost less accumulated amortisation and any accumulated impairment losses.
(l) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of fiscal year
which are unpaid. The amounts are unsecured. Trade and other payables are presented as current liabilities unless
payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and
subsequently measured at amortised cost using the effective interest method.
(m) Contributed equity
Equity shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net
of tax, from the proceeds.
(n) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
• the net profit/loss attributable to owners of the Company
• by the weighted average number of equity shares outstanding during the fiscal year
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:
• the after-income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and
• the weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.
(o) Statement of cash flows
The Company's statement of cash flows is prepared using the Indirect method, whereby profit for the period is
adjusted for the effect of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payment and item of income or expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the Company are segregated.
Cash and cash equivalents comprise cash and bank balances and short-term fixed bank deposits that are subject
to an insignificant risk of changes in value. These also include bank overdrafts that form an integral part of the
Company's cash management.
(p) Events after reporting date
Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the
reporting period, the impact of such events is adjusted in the financial statements. Otherwise, events after the
balance sheet date of material size or nature are only disclosed.
(q) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The management assesses the financial performance and position of the Company and makes
strategic decisions. The chief operating decision maker is the Managing Director and Chairman of the Company.
Refer Note 42 for segment information presented.
(r) Foreign currency
Foreign currency transactions
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are
generally recognised in profit or loss. A monetary item for which settlement is neither planned nor likely to occur in
the foreseeable future is considered as a part of the entity's net investment in that foreign operation.
All foreign exchange gains and losses are presented in the statement of profit and loss on a net basis within other
gains/(losses).
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are
reported as part of the fair value gain or loss.
For example, translation differences on non-monetary assets and liabilities such as equity instruments held at fair
value through profit or loss are recognised in profit or loss as part of the fair value gain or loss and translation
differences on non-monetary assets such as equity investments classified as FVOCI are recognised in other
comprehensive income.
2B. Recent Indian Accounting Standards (Ind AS)
(i) New and amended standards adopted by the Company:
The Company has applied the following amendments for the first time for their annual reporting period commencing
April 1, 2024:
Ind AS 117 Insurance Contracts
Ind AS 117 Insurance Contracts notified on August 12, 2024 is a comprehensive new accounting standard for
insurance contracts covering recognition and measurement, presentation and disclosure. Ind AS 117 replaces Ind
AS 104 Insurance Contracts. Ind AS 117 applies to all types of insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and financial instruments with discretionary participation features; a
few scope exceptions will apply.
The Company continues to account for Financial Guarantee contracts as per Ind AS 109 and thus Ind AS 117 does
not have any significant impact in its financial statements.
Ind AS 116 - Leases
The amendment notified on September 9, 2024 to Ind AS 116 specifically address the accounting for sale and
leaseback transactions under Ind AS 116 Leases. It does not alter the accounting for leases in general but impacts
sale and leaseback transactions that qualify as a sale and involve variable lease payments that are not in-substance
fixed payments. The amendment focuses on the subsequent accounting for the seller-lessee.
The amendments did not have any material impact on the amounts recognised in prior periods and are not expected
to significantly affect the current or future periods.
(ii) New Standards/Amendments notified but not yet effective:
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31,
2025, MCA has not notified any new standards or amendments which are not yet effective to the existing standards
applicable to the Company.
(a) Refer Note 41(b) for disclosure of contractual commitments for the acquisition of property, plant and equipment.
(b) The Company considers the individual clinics as cash generating units which are tested for impairment. The estimated
value-in-use of clinics is based on the future cash flows and profitability of the clinics. Based on an analysis of the sensitivity
of the computation to a change in key parameters (future revenues, remaining useful life of property, plant and equipment,
etc), an impairment loss of Nil in current year and and Nil in previous year in respect of carrying value of the property, plant
and equipment at some of the clinics has been recognised in the standalone statement of profit and loss.
Discount rate :
The discount rate considered for the purpose of calculation of impairment testing is 13% (31 March 2024 : 12%) which
is a pre tax measure based on the rate of 10 year government bonds issued by the Government of India, adjusted
for a risk premium to reflect both the increased risk of investing in equities generally and the systematic risk of the
specific CGU.
Growth rate :
The normalised growth rate for revenue is in the range from 3% to 35% (31 March 2024 : 6% to 20%). The cost considered
for future cash flow is based on past trends and considering the impact of inflation of cost and growth in revenue.
Life :
The life of asset has been taken based on leasehold term or useful life of the asset.
(c) The Company does not have any immovable property except those held under lease arrangements for which lease
agreements are duly executed in the favour of the Company.
The Company tests investments annually for impairment.
On 27 March 2024, the Company and its subsidiary KME Holdings Pte Ltd. had entered into a definitive Share Sale and
Purchase agreement to sell its entire shareholding in Kaya Middle East DMCC and Kaya Middle East FZE (collectively
referred to as ‘Middle east business') to Humania GCC Holding Limited (“Buyer”). This agreement also included the sale of
Intellectual property rights for the use of brand name ‘Kaya' for middle east business. As per the provisions of the Share
Sale and Purchase agreement, the consideration agreed with buyer for Kaya DMCC and Kaya Middle East FZE was
based on enterprise value of AED 2.3 Million (~ ' 510 lakhs) and AED 30.7 Million (~ ' 6,860 lakhs) respectively subject
to customary adjustments for debt, working capital, employee payables and other transaction related expenses. The
customary adjustments need to be considered based on actual amounts appearing in the books as at 31 May 2024 as per
the agreement with the buyer. The Company has obtained shareholders' approval for the said transaction through postal
ballot on 27 April 2024. Based on the estimate of net consideration to be received for this transaction, the Company had
recognised an impairment loss of ' 11,691.19 lakhs towards diminution in value of the said investments in the Statement
of Profit and loss for the year ended 31 March 2024.
During the year ended 31 March 2025, the sale of Kaya Middle East FZE and Kaya Middle East DMCC along with their
subsidiaries have been consummated on 6 June 2024 and 14 November 2024 respectively. Accordingly, the Company
has recognised an amount of ' 164.70 lakhs towards loss on sale of Kaya Middle East DMCC.
Further, in accordance with the provisions of Share Sale and Purchase agreement, the Company has also recognized
' 1,256.89 lakhs towards the sale of Intellectual property rights as Other income in the statement of profit and loss for the
year ended 31 March 2025.
Nature and purpose of the reserves :
Securities premium
Securities premium reserve is used to record the premium received on issue of shares. It is utilised in accordance with the
provisions of the Companies Act, 2013
Share Options Outstanding Account
The Company has established various equity-settled share-based payment plans for certain categories of employees of
the Company and its subsidiaries. Refer Note 39 for further details on these plans.
Capital reserve
Capital reserve was created in Financial year 2014-15 at time of Amalgamation of Marico Kaya Enterprises Limited ('MaKE')
into the Company.
General reserve
General reserve is a free reserve which is used from time to time to transfer profits from retained earnings for appropriation
purposes. General reserve includes amounts transferred from Share Options Outstanding Account in respect of options
for which exercise period has elapsed.
Fair valuation of Loans from promoter directors
This comprises adjustment on account of fair valuation of loan from promoter directors borrowed by the Company.
Retained Earnings
The amount that can be distributed by the Company as dividends to its equity shareholders out of accumulated reserves
is determined considering the requirements of the Companies Act, 2013.
Interest rate and terms of repayment
The interest shall be charged at the rate of 8% p.a. from 1 December 2020 onwards which is to be paid quarterly on the
outstanding balance. Effective Interest rate is 11%.
The loans are repayable in full at the end of the term of the loan agreement, which is in FY 2030-31. The Company has the
option to make part prepayment of the loans during the tenure of the agreement. The interest will be accordingly charged
on the outstanding loan amount.
Reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities.
The fair value of financial instruments as referred to in note above has been classified into three categories depending on
the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active market for
identical assets or liabilities (level 1 measurement) and lowest priority to unobservable inputs (level 3 measurements). The
categories used are as follows:
Level 1: Financial instruments measured using quoted prices (unadjusted) in active markets for identical assets or liabilities
that entity can access at the measurement date. This includes listed equity instruments, traded bonds, mutual funds,
bonds and debentures, that have quoted price. The fair value of all equity instruments (including bonds) which are traded
in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined using inputs that are observable for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices), using valuation techniques which maximise the use of observable market data and rely as little
as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is considered here. For example, the fair value of forward exchange contracts, currency swaps and interest
rate swaps is determined by discounting estimated future cash flows using a risk-free interest rate. The mutual funds are
valued using the closing NAV published by the mutual fund.
Level 3: The fair value of financial instruments for which the inputs are unobservable (i .e. inputs are not based on observable
market data), are measured on the basis of entity specific valuations. When the fair value of unquoted instruments cannot
be measured with sufficient reliability, the Company carries such instruments at cost less impairment, if applicable.
34 Financial Risk Management
Financial risk
In the course of its business, the Company is exposed to a number of financial risks: credit risk, liquidity risk and market
risk, which may adversely impact the fair value of its financial instruments. This note presents the Company's objectives,
policies and processes for managing its financial risk and capital. The key risks and mitigating actions are also placed before
the Board of Directors of the Company. The focus of the risk management committee is to assess the unpredictability
of the financial environment and to mitigate potential adverse effects on the financial performance of the Company. The
Company's risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems
are reviewed regularly to reflect changes in market conditions and the Company's activities.
The Company manages the risk through the finance department that ensures that the Company's financial risk activities
are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in
accordance with the Company's policies and risk objectives. The activities are designed to:
-protect the Company's financial results and position from financial risks
-maintain market risks within acceptable parameters, while optimising returns; and
-protect the Company's financial investments, while maximising returns.
(A) Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. Credit risk arises on liquid assets, financial assets, trade and other receivables.
In respect of its investments, the Company aims to minimise its financial credit risk through the application of risk
management policies.
Trade receivables are subject to credit limits, controls and approval processes. Company generally provides credit only to
institutional customers and for all the other individual customers, usually advance payment terms are specified. Basis the
historical experience, the risk of default in case of trade receivable is low. Provision is made for doubtful receivables on
individual basis depending on the customer ageing, customer category, specific credit circumstances and the historical
experience of the Company.
The carrying amounts of financial assets and contract assets represent the maximum credit exposure.
The gross carrying amount of trade receivables is ' 210.70 lakhs as at 31 March 2025 and ' 581.22 lakhs as at 31
March 2024.
The Company maintains exposure in Cash and cash equivalents, Term deposits with banks, Investments, Loans,
Security deposits and Other financial assets. Credit risk from investments of surplus funds is managed by the Company's
treasury in accordance with the Board approved policy and limits. Investments of surplus funds are made only with those
counterparties who meet the minimum threshold requirements prescribed by the Board. The Company monitors the
credit ratings and financial strength of its counter parties and adjusts its exposure accordingly.
Security deposits are interest free deposits given by the Company for properties taken on lease. Provision is taken on
a case to case basis depending on circumstances with respect to non recoverability of the amount. The gross carrying
amount of Security deposits is ' 1,241.95 lakhs as at 31 March 2025 and ' 1,197.77 lakhs as at 31 March 2024.
Advances are given to subsidiaries for various operational requirements. Provision is made on a case to case basis
depending on circumstances with respect to non recoverability of the amount. The gross carrying amount of loans and
advances is Nil as at 31 March 2025 and ' 78.68 lakhs as at 31 March 2024.
(B) LIQUIDITY RISK
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market
positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by
maintaining availability under committed credit lines. (Also refer Note 1(f) of accounting policies)
(ii) Price Risk:
Mutual fund Net Asset Values (NAVs) are impacted by a number of factors like interest rate risk, credit risk, liquidity
risk, market risk in addition to other factors. A movement of 1% in NAV on either side can lead to a gain/loss of ' 3.63
lakhs and ' 27.24 lakhs, on the overall portfolio as at 31 March 2025 and 31 March 2024 respectively.
(iii) Interest Risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. Since the Company does not have floating interest bearing borrowings, the
exposure to risk of changes in interest rate and impact of same is not applicable.
35 Capital Management
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to
optimise returns to its shareholders.
The capital structure of the Company is based on management's judgement of the appropriate balance of key elements
in order to meet its strategic and day-to-day needs. It considers the amount of capital in proportion to risk and manage
the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.
The capital structure of the Company consists of net debt (borrowings as detailed in Note 19, offset by cash and bank
balances) and total equity of the Company.
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investor, creditors and market confidence and to sustain future development and growth of its business. The Company
will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
37 Disclosure under Ind AS 116, Leases
This standard on leases sets out the principles for the recognition, measurement, presentation and disclosure of the
leases. The core objective of this standard is to ensure that lessees and lessors provide relevant information in a manner
that faithfully represent those transactions.
On transition to Ind AS 116, the Company has applied the practical expedient to grandfather the definition of a lease on
transition. This means Ind AS 116 has been applied to all contracts entered into before 1 April 2019 and identified as leases
in accordance with Ind AS 17.
Company has credited to the statement of profit and loss ' 62.21 due to termination of certain lease contracts.
The Company leases clinic premises, plant and machineries and computers.
IV. Loans and advances in the nature of loans to subsidiaries / joint venture - refer Note 47
V. The promoters of the Company have given letter confirming their commitment to provide financial support in order to
meet the shortfall in its fund requirement and for its working capital requirement which will enable it to operate and
settle its liabilities and obligations as and when they become due and payable for a period not less than 12 months
from the date of financial closure of the accounts of the Company for the year ended 31 March 2025.
VI. Terms and conditions of transactions with related parties :
The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions.
Outstanding balances on at the year end are unsecured and settlement occurs in cash.
39 Share based payments
a) Kaya ESOP 2016 - Scheme IV:
The Nomination & Remuneration Committee on 3 August 2021 has granted 215,403 stock options at an exercise
price of ' 331, to certain eligible employees of the Company and Kaya Middle East FZE (subsidiary company),
pursuant to the Kaya ESOP 2016 - Scheme IV. One stock option is represented by one equity share of Kaya Limited.
The Options granted under Kaya ESOP 2016 - Scheme IV shall vest over 3 years from the Grant Date in the
following manner:
• 34% of the Options granted will be vested at the end of first year from the grant date;
• 33% of the options will be vested at end of second year from the grant date;
• 33% of the options will be vested at the end of third year from the grant date.
c) Kaya ESOP 2021 - Scheme II:
The Nomination & Remuneration Committee on 29 May 2022 has granted 121,000 stock options at an exercise price
of ' 396, to certain eligible employees of the Company and Kaya Middle East FZE (subsidiary company), pursuant to
the Kaya ESOP 2021 - Scheme II. One stock option is represented by one equity share of Kaya Limited.
The Options granted under Kaya ESOP 2021 - Scheme II shall vest over 3 years from the Grant Date in the
following manner:
• 34% of the Options granted will be vested at the end of first year from the grant date;
• 33% of the options will be vested at end of second year from the grant date;
• 33% of the options will be vested at the end of third year from the grant date.
II. Defined benefit plan:
Gratuity:
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972, Employees who
are in continuous service for a period of 5 years or more are eligible for gratuity. The amount of gratuity payable on
retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days
salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes
contribution to recognised funds in India. The Company does not fully fund the liability and maintains a target level of
funding to be maintained over a period of time based on estimations of expected gratuity payments.
(c) The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for
the Code on Social Security, 2020 on 13 November 2020, and has invited suggestions from stakeholders which are
under active consideration by the Ministry. The Company will assess the impact and its valuation once the subject
rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes
effective and the related rules to determine the financial impact are published.
(d) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required and disclosed as contingent liabilities where applicable, in these standalone financial
statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on
its financial position.
42 Segment information
Operating Segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker ("CODM") of the Company. The CODM who is responsible for allocating resources and assessing
performance of the operating segments has been identified as the Chairman and Managing Director of the Company.
The Company operates only in one business segment i.e. " Sale of skin care and hair care products and services" which is
reviewed by CODM and all the activities incidental thereto are within India, hence Company does not have any reportable
segments as per Ind AS 108 "Operating Segments". Further, no single customer contributes to more than 10% of the
Company's revenue.
44 Additional regulatory information required by Schedule III
i) Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
ii) Borrowing secured against current assets
The Company has sanctioned limit against overdraft facility, letter of credit and bank guarantee but the same has not
been utilized during the year. No security has been provided against these limits. No disclosure required against the
sanctioned limits.
iii) Wilful defaulters
Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
iv) Relationship with struck off companies
The Company has reviewed transactions to identify if there are any transactions with struck off companies. To the
extent information is available on struck off companies, there are no transactions with struck off companies.
v) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies
Act, 2013.
vi) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
vii) Utilisation of borrowed funds and share premium
The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries
viii) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.
48 The Company's international transactions with related parties are at arm's length as per the Income-tax Act, 1961 and
as supported by an independent accountants report for the year ended 31 March 2024. Management believes that
Company's international transaction with related parties post 31 March 2024 continue to be at arm's length as per the
Income-tax Act, 1961 and that the transfer pricing legislation will not have any impact on the amount of income tax
expense and that on provision for income tax.
Notes 1 to 48 form an integral part of the Standalone Financial Statements
As per our report of even date attached.
For B S R & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants Kaya Limited
Firm's Registration No: 101248W/W-100022 CIN:L85190MH2003PLC139763
Jaclyn Desouza Harsh Mariwala Vivek Karve
Partner Chairman and Managing Director Director
Membership No: 124629 DIN: 00210342 DIN: 06840707
Mumbai Mumbai
Arihant Dhariwal Nitika Dalmia
Chief Financial Officer Company Secretary
Mumbai Membership No: 420199 Membership No. A33501
28 May 2025 Mumbai Mumbai
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